P12-8 Renton Corporation incurred total joint cost of P150.000 to manufacture three joint products, R, E ,and N. These products were further processed for an additional cost of P230,000 and then sold for P410,000 as follows: Additional Processing Costs (all variable) P100,000 80,000 Product Sales R P200,000 120,000 90,000 P410,000 E 50,000 P230,000 Renton received an offer to sell the products to other processors at split-off. If the offer was accepted, sales would have been: R, P110,000; E, P20,000; and N, P35,000. Rentòn forecasts the same production and sales level. Required: Did the net income increase as a result of processing the products further? How much is the overall net income? а. Which of the three products should be sold at split-off point? Which should be processed further? b.

P12-8 Renton Corporation incurred total joint cost of P150.000 to manufacture three joint products, R, E ,and N. These products were further processed for an additional cost of P230,000 and then sold for P410,000 as follows: Additional Processing Costs (all variable) P100,000 80,000 Product Sales R P200,000 120,000 90,000 P410,000 E 50,000 P230,000 Renton received an offer to sell the products to other processors at split-off. If the offer was accepted, sales would have been: R, P110,000; E, P20,000; and N, P35,000. Rentòn forecasts the same production and sales level. Required: Did the net income increase as a result of processing the products further? How much is the overall net income? а. Which of the three products should be sold at split-off point? Which should be processed further? b.

Name: PIz-3 Renton Corporation incurred total joint cost of P150.000 to man
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Description: PIz-3 Renton Corporation incurred total joint cost of P150.000 to manufacture three jointproducts, R, E ,and N. These products were further processed for an additional cost ofP230,000 and then sold for P410,000 as follows:AdditionalProcessing Costs(

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 12PB: Laramie Industries produces two joint products, H and C. Prior to the split-off point, the company...

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P12-2 Valera Company incurred total joint costs amounting to P102,000 in producing products A, B, and C. Additional information are provided below: Additional Processing Costs Adjusted Market Market Disposal Costs value at Products Units Produced Value split-off P15.00 P20,000 30,000 10,000 P60,000 А P19.00 4,000 6,000 10,000 P5,000 2,000 1,000 P8,000 В 10.00 11.00 8.00 9.60 20,000 Required: Calculate the total production cost using: Quantitative or physical unit method a. b. Sales value at split-off method C. Net realizable value (or adjusted sales value) method
HASF Corporation manufactures products A, B, and C from a joint process. Joint costs are allocated on the basis of relative sales value at the end of the joint process. Additional information for HASF are as follows: A B C Total Units produced 12000 8000 4,000 24,000 Joint costs 144000 60,000 36,000 240,000 Sales value before additional processing 240000 100,000 60,000 400,000 Additional costs for further processing 28000 20,000 12,000 60,000 Sales value if processed further 280000 120,000 70,000 470,000 Required: Which, if any, of products A, B, and C should be processed further and then sold? Keeping in view the answer of "part a", write down your critical feedback to support your answer
The Mallak Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were: Product Weight Sales Additional Processing Costs P 300,000 lbs. $ 245,000 $ 200,000 Q 100,000 lbs. 30,000 -0- R 100,000 lbs. 175,000 100,000 What is the net income of Mallak Company if the estimated net realizable value method of joint cost allocation is used? Multiple Choice $150,000. $20,000. $50,000. $350,000.
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The meadows Company produced three joint.products at a joint cost of P132,000. Additional information for a recent period is as follows: Product Units produced Sales value Sales value and additional Processing if Processed Add'l Costs P19,800 15,400 11,000 At split-off 13,200 8,800 4,400 P88,000 77,000 55,000 Sales Value P121,000 99,000 66,000 Required: Allocate joint costs using: 1. Sales value at split-off 2. Physical units ABC
BSBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as foliows: Units produced (20.000; 30,000; 5,000 and 5,000); Unit sold (18.000; 25,000; 5,000 and 5,000): Final unit selling prices (P25.00: P20.00; P2.00 and P1.50): Further processing costs (P150,000; P210.000; P5,000 and P4,000); Selling and Administrative expenses (P15,000; P21,000: P500 and P400); Desired profit on Cand D (P2.000 and P1,500). If the joint costs are allocated to by-products using the reversal cost method, what is the total costs of by products? P11,136 P12,036 P13,100 P14,000 ESBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced…
BSBA Company produced two joint products A and B. and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20.000: 30.000: 5,000 and 5,000); Unit sold (18.000: 25.000: 5.000 and 5,000): Final unit selling prices (P25.00: P20.00: P2.00 and P1.50); Further processing costs (P150,000; P210.000: P5.000 and P4.000); Selling and Administrative expenses (P15,000; P21.000; P500 and P400); Desired profit on Cand D (P2.000 and P1,500). If the by-products are presented as other income. what is the total amount of net sales and cost of goods sold, respectively? P950,000 and P475411 P950,000 and P483,011 P957,600 and P475,411 P957,600 and P483,011 ESBA Company produced two joint products A and B, and by-products C and D from the same raw materials with joint costs P200.000. The entity uses net realizable value in allocating joint costs to joint…
BSBA Company produced two joint products A and B. and by-products and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced (20.000; 30,000: 5.000 and 5,000); Unit sold (18.000: 25.000; 5,000 and 5.000); Final unit selling prices (P25.00: P20.00; 2.00 and P1.50): Further processing costs (P150.000; P210.000; P5,000 and P4,000); Selling and Administrative expenses (P15,000: P21,000; P500 and P400); Desired profit on C and D (P2,000 and P1,500). If the joint costs are allocated to by-products using the reversal cost method, what is the total costs of by products?* P11,136 P12,036 P13,100 P14,000 BSBA Company produced two joint products A and B. and by-products C and D from the same raw materials with joint costs P200,000. The entity uses net realizable value in allocating joint costs to joint products. Other information are as follows: Units produced…
VE The G-Lab Company produced three joint products at a joint cost of $150,000. Two of these products were processed further. Production and sales were: K Product Sales Additional Processing Costs 200,000 0 100,000 If joint costs are allocated based on relative weight of the outputs and all products are main products, how much of the joint costs would be allocated to product A? (Do not round intermediary calculations. Round final answer to the nearest cent) A B с Weight 100,000 lbs 200,000 lbs 300,000 lbs. OA $25,000.00 B. $100,000.00 OC. $75,000.00 OD. $81,666.67 245,000 30,000 175,000
P12-7 Auburn Company manufactures two main products X and Y, and a by-product Z that are all produced in Department 1. Product X is further processed in Department 2, Product Y in Department 3, and Product Z in Department 4. Joint production costs are allocated based on sales value at split-off. The value of the by-product Z reduces the cost of the main products X and Y. Department 1 Department 2 Department 3 Department 4 P200,000 Cost Incurred: P22,400 P17,600 P10,000 Production: 8,000 units 5,000 units Y 2,000 units Ending inventory: 1,000 units 2,000 units 1,000 units Y Selling Price: P18.00/unit Y P19.20/unit P12.00/unit Required: а. Calculate the unit costs of X and Y. Calculate the value of the ending inventory. Calculate the unit costs of X and Y if joint costs are allocated using net realizable b. C. value method. Calculate the value of the ending inventory i* joint costs are allocated using net d. realizable value method.
2. ABC Company uses a joint process to produce products A, B, and C. The joint production costs for 201A were 500,000 and were allocated using relative sales value at the split-off point method. Each product may be sold at its split-off point or processed further. Additional processing costs are entirely variable. Additional Sales Value at Final Sales Products Processing Costs P130,000 100,000 140,000 Split-off Value P300,000 120,000 250,000 420,000 230,000 A B 400,000 P1,050,000 P670,000 P370,000 a. To maximize profit, which product/s should be sold at split-off point and be processed further, respectively? b. If the alternative were to sell at split-off point or to process further all products, which alternative would be recommended?